Bottles of Budweiser from Anheuser-Busch, which will maintain Chicago beer distributor ownership.

In a controversial decision that upsets beer distributors, the Illinois Liquor Control Commission decided today that Anheuser-Busch InBev N.V. can continue to hold a 30 percent stake in City Beverage-Illinois, the state's largest Budweiser distributor.

The 4-to-2 decision ends a battle that has been brewing for nearly two years.

Commissioners suggested that state legislators consider amending Illinois law to "clearly redefine the historic three-tier system of alcohol regulation in Illinois as it applies to allowable ownership interests so as to prevent cross-ownership among tiers" and revise the Liquor Control Act to include out-of-state brewers on the list of firms prohibited from holding more than 5 percent ownership in a distributor.

Bill Olson, president of the Associated Beer Distributors of Illinois, criticized the ruling, calling it the "regulatory process run amok" because it "impairs Illinois' authority to regulate alcohol beverages." Distributors oppose brewer ownership of such firms, saying it could give beer makers too much power over what products are shipped to retailers.

Wine and Spirits Distributors of Illinois said it was "disappointed" in the decision.

Illinois operates under a three-tier system that does not allow producers, distributors and retailers access to each other's industry. The only exception is for small craft brewers, those who produce a limited number of barrels each year.

"Without independent distributors in the state's three-tier regulatory system, a brewer could influence every aspect of the sale of beer in the state," Mr. Olson said in a statement.

Anheuser-Busch is “pleased” that the commission has “upheld the law and its long-standing practice of allowing Anheuser-Busch to own an interest in a licensed distributor,” Gary Rutledge, vice president and general counsel for Anheuser-Busch N.A., said in a statement.

“AB has made significant long-term business investments in Illinois based on the law, which is reflected in today's decision,” he said.

The fight began in 2009 when Soave Distributing Inc. tried to sell its 70 percent stake in City Beverage-Illinois to Anheuser-Busch InBev. The beer maker already owned 30 percent of City Beverage-Illinois through its WEDCO affiliate. The Illinois Liquor Control Commission blocked the sale of the remaining 70 percent on the basis that non-Illinois brewers cannot hold a distribution license in Illinois.

Anheuser-Busch sued the commission, but a U.S. District Court judge ruled the state's law was discriminatory, since Illinois beer makers could hold a distribution license. The judge gave state lawmakers time to revamp legislation to correct the legal flaw.